Severe gas crisis: Crash in industrial production

A severe gas crisis is causing a sharp decline in the country’s industrial production.

This is due to plummeting gas pressure, forcing factories to cut production and seek costly alternatives, potentially leading to the factory closures and job losses. Consequently, there is pressure on the economy.

Sources from the Energy Department and Petrobangla say, gas production from domestic wells has been declining for several years.

The interim government has increased imports of liquefied natural gas (LNG) to the meet demand.

The current demand for gas is about 4,200 million cubic feet. But 2,698 million cubic feet of gas is being supplied daily. Of them, 1,842 million cubic feet is being supplied from domestic gas fields and 856 million cubic feet from imported LNG.

Entrepreneurs say that the gas crisis has caused a disaster in the industrial sector. Hundreds of factories have been closed. Production in the ceramic, steel and textile sectors has almost halved.

In this situation, gas prices have been increased by 33 percent in industries and captive power plants. Industrialists are upset over the new increase in gas prices without taking steps to increase gas supply.

It has been found that production in industries and factories in Chittagong, Gazipur, Savar, Narayanganj, and Narsingdi has almost halved due to lack of gas as per demand.

Although there is a system for generating gas-powered captive power, industries are also unable to operate them due to the gas shortage. Many are forced to use alternative fuel LPG. Industrialists are facing huge losses due to the increase in production costs.

Experts say that the government is facing a gas crisis because of the wrong policies it has taken regarding energy in the past.

In these challenging times, both the price of gas and the supply crisis are increasing the cost of producing goods in the manufacturing sector. To sustain the country’s economy, gas supply needs to be uninterrupted and prices need to be reduced from the current levels.

If the industrial sector does not survive, economic growth will come to a halt. Therefore, strong initiatives must be taken to meet the gas and electricity needs of the industry. It is expected that the government will take necessary steps to quickly resolve the gas crisis in the interest of the economy.